Attorney General Slaps Dearborn-Based Fundraiser With 2,594 Violations

DEARBORN, MI — Dearborn-based professional fundraiser Golden Recyclers, Inc. is in hot water after Michigan Attorney General Bill Schuette declared a Notice of Intended Action and Cease and Desist Order against the fundraiser today amid allegations of over 2,594 violations of the Charitable Organizations and Solicitations Act, according to a press release. Each violation carries a maximum penalty of $10,000.

So, what's the story on Golden Recyclers? The group reportedly operates 318 clothing donation bins in the state, mostly in Metro Detroit. Schuette has accused Golden Recyclers of illegally operating the clothing donation bins and misrepresenting what happens to the donated items.

Some bins state that the donations go to Cancer Federation Inc. However it turns out Golden Recyclers pays $12,000 a year to Cancer Federation Inc. to use its name on the bins but all clothing actually goes to Golden Recyclers, which is not explained on the bins. Other bins have a sticker with the logo "Mercy" and nothing else. Schuette states donations in those bins also do not go to charity and instead directly to Golden Recyclers.

It is not yet clear what Golden Recyclers does with the donations placed in the bins; however, records obtained by the Attorney General show Golden Recyclers earned gross receipts of $223,000 over a six-month period in 2015.

“Michigan citizens are generous, especially around the holidays,” Schuette said in a statement. “I won’t tolerate companies that exploit that generosity for private gain. Not only does it harm donors, it also harms those charities that play by the rules by diverting donations from their charitable programs—donations they especially need during the holidays.”

What happens now? Golden Recyclers has to cease and desist all 2,594 violations and has 21 days to resolve the matter or face a civil action in court. That's not all. Schuette is calling for Golden Recyclers to cough up information and financial records regarding its operation of the bins.

Golden Recyclers first came to the attention of the Attorney General’s Charitable Trust Section after a consumer complained about the vague bins labeled “Mercy.”

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